A conventional mortgage, often referred to as a conventional loan, is a prevalent option you'll encounter when exploring mortgage choices. Offered by most lenders, this loan type is one of the most common ways to finance a home.
A conventional mortgage or loan is a home buyer's loan that isn't secured or provided by a government entity. Instead, these mortgages are available through private lenders, including banks, credit unions, and mortgage companies.
Conventional mortgages are categorized into "conforming" and "nonconforming" loans:
Conforming Loans: These adhere to the guidelines set by Fannie Mae and Freddie Mac, government-sponsored entities that fund the U.S. housing market. The primary rule is the loan size limit, which was set at $647,200 for most of the continental U.S. in 2022. Higher-cost areas have higher limits.
Nonconforming Loans: These include jumbo loans for buyers who need to borrow amounts exceeding the conforming limit for their area. Other nonconforming loans are available to borrowers with poor credit, high debt, or recent bankruptcy, or those purchasing homes with a high loan-to-value ratio.
Conventional mortgages are categorized into "conforming" and "nonconforming" loans:
Conforming Loans: These adhere to the guidelines set by Fannie Mae and Freddie Mac, government-sponsored entities that fund the U.S. housing market. The primary rule is the loan size limit, which was set at $647,200 for most of the continental U.S. in 2022. Higher-cost areas have higher limits.
Nonconforming Loans: These include jumbo loans for buyers who need to borrow amounts exceeding the conforming limit for their area. Other nonconforming loans are available to borrowers with poor credit, high debt, or recent bankruptcy, or those purchasing homes with a high loan-to-value ratio.
Even with a conventional loan, you might qualify for down payment assistance. Various government agencies and community programs offer support to buyers in complex financial situations, regardless of the financing type used.
Conventional mortgages provide flexible options for many buyers, making homeownership accessible even without a large down payment.
We offer a personalized and distinctive approach to mortgages, combining human-driven insights with technical expertise to create a perfect hybrid. Our lending solutions are designed to expedite loan processing, delivering faster results while substantially reducing costs.
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"Hi, my name is Chet Decker. I'm the Executive Vice President at The Mortgage Link, Inc., where we specialize in providing personalized mortgage solutions, fast and customized quotes, competitive rates, and exceptional service with integrity."
For Texas Consumers Only: Consumers wishing to file a complaint against a company regarding the origination and/or servicing of your mortgage loan or a complaint against a residential mortgage loan originator concerning residential mortgage loans on real estate located in Texas should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 north Lamar, suite 201, Austin, Texas 78705. complaint forms and instructions may be obtained from the departments website at www.sml.texas.gov. a toll-free consumer hotline is available at 1-877-276-5550.
The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. a written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. for more information about the recovery fund, please consult the departments website at www.sml.texas.gov.
Standard LSM disclosure: This is not a commitment or offer of credit. All applications must be submitted in writing and are subject to credit approval. Not all borrowers who apply will be approved.
